Maxine Aaronson, Attorney at Law
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Estate Planning Newsletter

  • Constructive Trusts: Fraudulent Transfer of Property
    A constructive trust is a remedy imposed by the court when a person has wrongfully attained property. The court basically takes the property away from the wrongful owner and puts it in trust for the rightful owner. In the estate... Read more.
  • Revocable & Irrevocable Trusts
    Unlike a will or some other types of trusts, which take effect upon the death of their creator, a “living trust” or “inter vivos trust” comes into effect during its creator’s lifetime. The creator of a... Read more.
  • Totten Trusts for Assets Payable on Death
    A decedent’s assets may be transferred upon their death to their heirs or other beneficiaries through probate. “Probate” is the legal process by which a court determines who receives a decedent’s assets under... Read more.
  • Adding Flexibility to Your Estate Plan
    What is a Power of Appointment? A power of appointment is the power given by one person to another (referred to as the “holder” of the power of appointment) to designate who is to receive an asset.... Read more.
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Resulting Trusts

There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is created by the court to remedy some error, from an express trust, which is a trust expressly created by a person (the trustor or settlor) who designates a trustee to manage assets or property for the benefit of trust beneficiaries.

When a Resulting Trust Is Imposed

A resulting trust is typically imposed by a court, and may occur under any of the following situations:

  • Failure of an express trust (due to unclear intentions or inherent illegality)
  • A need to determine who is to receive property that remains after an express trust has been administered and property has been distributed
  • A person acquires property that was not meant to be a gift to him/her

Distinguishing Characteristics

Resulting trusts are different from other trusts, in that they are:

  • Involuntary – Imposed by law, rather than being voluntarily created.
  • Not a Constructive Trust – Imposed because of a good faith error, instead of the fraudulent transfer or undue influence that characterizes constructive trusts.